WASHINGTON—Consumer prices rose more sharply than anticipated in August, while jobless claims picked up pace—sending mixed signals to the Federal Reserve ahead of its policy meeting next week.
The Consumer Price Index climbed 0.4% on a seasonally adjusted basis, the largest monthly gain since January. That pushed the annual inflation rate to 2.9%, up from 2.7% in July and the highest level seen this year.
“Prices rose faster in August, pushing headline inflation higher. Core inflation, which excludes volatile food and energy prices, remained flat on an annual basis,” noted America's Credit Unions Senior Economist Dawit Kebede. “Although there were some increases in tariff-sensitive imported goods such as clothing and new cars, services were the main driver of the year-over-year increase.
“This report is unlikely to change expectations that the FOMC will cut rates when they meet next week, as the labor market continues to show weakness through slow hiring and rising unemployment,” continued Kebede. “As consumers see increased risks in affording daily life, credit unions will continue to be trusted partners to find affordable solutions to their financial needs.”